The present invention relates to a card holder system. The invention relates further to a method for invalidation of a credit card that has been removed without authorization from said card holder system.
Though the use of credit card is increasingly commonplace, a satisfactory securing of credit cards against unauthorized financial transactions has not yet been accomplished. These unauthorized transactions are partly due to theft of credit cards and partly because cards are lost, for example when cards by way of inattention are left inattentively after a financial transaction.
Different card holders for preventing loss of credit cards have been developed and are described in prior art. Common for a number of these card holders is that an alarm is started, if cards from the card holder after a certain time are not returned to the card holder, see for example U.S. Pat. No. 5,914,657.
However, even though the attention of the card owner is drawn to the fact that a card has been lost from the card holder, the owner will not immediately be aware of loss of the card holder itself.
In UK patent GB 2 236 000, an alarm system is disclosed, where a transmitter is carried by a person along with the wallet in which a corresponding receiver is placed. The receiver receives the transmitted signal from the transmitter as long as the receiver is in near vicinity of the transmitter. When the receiver fails to receive the signal due to a larger distance between the transmitter and the receiver, for example in the case of loss or theft of the wallet, the receiver activates a beeper.
Though this system takes care of the situation, where a wallet is lost, this system is not indicating the loss of a single credit card from the wallet.
The purpose of the present invention is to provide a card holder with a very high security level that prevents fraud of credit cards.
This purpose is achieved by a card holder as described by way of introduction characterised in that said card holder system further comprises invalidation means for receiving said signal and thereupon causing a card to be invalidated if said card is removed from said receptacle before deactivation of said security means.
The invention is a holder for cards, for example credit cards, smart cards, or other personal cards with data stored on it. The cards are inserted into receptacles in the card holder, for example through suitable slots. Once inserted into the card holder, sensing means, for example a magnetic sensor, registers that a card has been inserted into the receptacle. As a further step, security means can be activated. Once these security means are activated, it is not possible without authorization to remove a card from the holder without causing an invalidation of the card. The invalidation process is initialized by the emission of a signal from the sensing means and the receipt of that signal by the invalidation means. The invention, therefore provides a safe protection against fraud of credit cards or the like. Cards in the holder are protected even when the complete card holder has been lost or stolen, because no card can be removed from it unauthorized without invalidation of the card.
In another embodiment of the invention, the card holder system is characterized in that said activation and deactivation of said security means for a card in a receptacle can be carried out on at least three levels, where the first level comprises full deactivation of said security means to allow removal of said card from said receptacle, where the second level comprises partly deactivation of said security means to allow said card to be removed from said receptacle, but where an alarm after a predetermined time indicates that a card has been removed from said receptacle.
The card holder can be used without activation of the security means. This way, the card holder functions solely as a card wallet without the security options that the invention provides. At full activation, a card cannot be removed from the wallet without invalidation of the card as previously described. When a user wants to use one of the cards in the card holder, a second level of activation of the security means is chosen. In this level, a predetermined card can be removed from the card holder for a certain time, for example 210 seconds. After that time limit, an alarm is initiated to draw the attention of the user of the card holder to the fact that a card is missing. This level of activation is normally chosen by the user when a financial transaction is performed. It minimizes the risk of fraud by third persons, when a card is lost or stolen during or immediately after the financial transaction. As soon as the alarm starts, the user may return to the place of the financial transaction in order to search for the card. If the card is not to be found an invalidation can eventually be initiated. The relatively short time between the loss or theft of the card and the start of the alarm with a following invalidation effectively hinders unauthorized persons to misuse the card. The card holder can be used for different kinds of cards, an example is credit cards.
In a third embodiment of the invention, the alarm comprises means for creation of sound, vibrations and/or visual signals.
Normally the card holder will be carried in a pocket, so that sound like beeping will be part of the alarm. However, for deaf people, the alarm can be chosen the include vibrations. A third option includes visual signals as flashing or the like.
In a fourth embodiment of the invention, said invalidation means comprises magnetization means for erasing at least part of the information stored on a magnetic strip on a card.
Most credit card nowadays are equipped with magnetic strip on which data are stored for recognition of the card. If part of the information on that strip is lost, the card is not usable for financial transactions anymore. This fact is used in this embodiment of the invention, where during the unauthorized removal of the card from the card holder, a part or all of the information on the magnetic strip is erased by magnetization.
In a fifth embodiment of the invention, said invalidation means comprises a high frequency heater for destroying at least part of the magnetic strip on the card, whereby at least part of the information stored on said magnetic strip is erased.
In this embodiment of the invention, part or all of the information on the magnetic strip is erased by heating the strip at certain locations.
In a sixth embodiment of the invention, said card holder system comprises transmission means for transmitting said signal from said card holder system to an external receiver connected to external invalidation means.
In this embodiment of the invention, the card holder system is equipped with a transmitter, for example a radio signal transmitter or a telephone signal transmitter. Upon loss of a card, a signal is transmitted to an external receiver, whereupon invalidation of a card takes place. This feature is especially useful, if the card is lost during a financial transaction. Not only can the attention of the user be drawn to the fact that a card is lost, but if the card is not found, an automatic invalidation is taking place. In this case, the invalidation is not a direct destruction of the data on the card, but an electronic invalidation such that the card cannot be used in banks, etc. For example, the receiver can be connected to the computer system of the credit agency that issued the card or a data center connected to all financial institutions.
In a seventh embodiment of the invention, that said card holder system comprises an integrated computer with CPU and ROM.
Microcomputers can easily be incorporated in devices like a card holder according to the invention. Including a computer into the card holder offers a number of advantages as also will become apparent in the following embodiments.
In an eighth embodiment of the invention, said card holder system comprises data communication means for communication with the microprocessor in a smart card which is located in a receptacle.
Smart cards are cards with integrated microprocessors. These kind of cards may have a magnetic strip, but they do not need to. If these cards do have a magnetic strip, the previous described invalidation by erasing data on the magnetic strip may be sufficient. However, in order to employ the security system of the invention in an optimum way, a communication between the card holder and the smart card is desirable. If the card is not equipped with a magnetic strip, the communication with the microprocessor is essential.
In a ninth embodiment of the invention, said activation means comprises an alphanumeric keyboard for accepting security codes, activation orders and further alphanumeric input from the user of the card holder system.
In order to activate or deactivate the security system, a electronic combination lock can be used. An alphanumeric keyboard integrated in the card holder is usable for the input of number codes and other commands. Furthermore, the keyboard can be used for the input of further data, like the amount of money spent for a certain card or other information that is wanted by the user in connection with the card holder. Once equipped with a keyboard and a suitable memory and data unit, the card holder can be used as an organizer for financial transactions with credit cards.
In a tenth embodiment of the invention, said activation means comprises a fingerprint sensor for reading the fingerprint of the user for verification of the user""s authorization to access cards in said card holder system.
This embodiment of the invention uses the fact that fingerprints are individual. As only a user who is recognized by the security system will be given authorization to take a card from the card holder, this kind of security system is to be regarded as extremely safe.
In an eleventh embodiment of the invention, said card holder system comprises display means for displaying information to the user.
In order to communicate data to the card holder and to ease the verification by the user of the data entered, a display is incorporated in the card holder. If the card holder, as mentioned above, is used as a financial organizer or the like, a display in the card holder is of vital importance.
In a twelfth embodiment of the invention, said card holder system further comprises terminal interface means for communicating data to an external computer system.
The card holder itself may be a relatively small device, eventually fitting into a pocket or maybe even a wallet. In order to use the data from the card holder in a more efficient and variable way, a transfer of the data from the holder to a computer system with higher capacity is foreseen in this embodiment of the invention. For example, the data transfer can be performed through a data bus, like special cables.
In a thirteenth embodiment of the invention, said terminal interface means comprises an infrared data transmission port.
This way, a cable can be omitted, which facilitates the use of the card holder as an organizer connected to a computer system with higher capacity.
In a fourteenth embodiment of the invention, said card holder system comprises an integrated mobile telephone.
By integrating a mobile telephone into the card holder, the card holder not only is a more versatile tool, but loss of cards can be signalled to an external receiver in a common and safe way, after which invalidation of the card can be initiated as described above. Integrating a mobile telephone into the card holder instead of other transmission means is preferred due to the approved technology and low production cost.
In a fifteenth embodiment of the invention, said card holder comprises a number of connected sections configured to be engage able to form a structure having the same general dimensions as a credit card, each section having a receptacle for a card. A metallic strip extends through said number of connected sections forming a loop around said receptacles. A mutual disconnection of the number of connected sections results in a breakage of said loop causing said invalidation means to invalidate all cards in the card holder system.
In case of intended fraud, an unauthorized person may be tempted to break the card holder in order to get hold of the cards without invalidation. However, if any section with receptacle is disconnected from the other receptacles in the other sections, the metallic strip is broken and for safety reasons, all cards are invalidated.
As an additional safety, the metal strip can extend through the cover lid of the power supply, for example a battery. To protect the card holder against unauthorized removal of the power supply, the cover lid of the power supply is included in the safety system. Thus, if the cover lid is removed without deactivation of the security system, all card are invalidated. As an alternative to a battery as a power supply, an electric accumulator in connection with solar cells is also possible.